ArcelorMittal plans to invest $900 million to build a new steel plant in the United States to meet the needs of the automotive industry

ArcelorMittal said on Thursday it will build an advanced steel manufacturing plant in Calvert, Alabama, to increase capacity to meet the needs of the U.S. auto industry.

The world’s second-largest steelmaker said the plant will be able to produce up to 150,000 tons of premium non-grain-oriented electrical steel (NOES) annually, mainly for large cars, full-size pickup trucks and SUVs.

Growing demand for high-end NOES in the United States and limited domestic supply should support the premium outlook for NOES produced at the new plant, the company said.

The plant, which will cost an estimated $900 million to build, is expected to start production in the second half of 2027, ArcelorMittal said.

U.S. new car sales hit a five-year high in 2024, driven by hybrid models, according to Wards Intelligence.

Automakers expect strong sales momentum to continue through 2025, although U.S. President Trump’s proposed auto policies, such as eliminating tax credits for electric vehicles, could bring uncertainty to the industry.